Brazil manufacturing PMI rebounds in May to three-month high
- The headline PMI rose to 53.7 in May from 52.3 in April, IHS Markit said.
- The input prices index, which measures the price of raw materials, fell to 81.1 from 86.8, the lowest since last July. The real has strengthened more than 10% against the dollar in the last two months.
BRASILIA: Growth in Brazil's manufacturing sector accelerated in May to its fastest rate in three months, a survey of purchasing managers' activity showed on Tuesday, as businesses banked on an end to the current COVID-19 difficulties and a brighter future.
New orders and employment grew at their fastest pace since February, new export orders were the highest this year and the real's recent appreciation pushed input prices to a 10-month low, IHS Markit's purchasing managers index (PMI) report showed.
The headline PMI rose to 53.7 in May from 52.3 in April, IHS Markit said.
A reading above 50.0 marks expansion, while a reading below signifies contraction. The series was launched in 2006.
"It's encouraging to see how quickly the manufacturing sector recovered from the recent downturn related to the new wave of COVID-19 cases," said Polyanna de Lima, economics associate director at IHS Markit, noting a "solid upturn" in factory jobs and business optimism.
"Survey members again hoped that vaccine availability will improve in the coming months, limiting the spread of the disease and fostering output growth. A number of firms plan to launch new products and boost investment," she said.
Many recent economic indicators have surprised to the upside, prompting Economy Minister Paulo Guedes to predict that the economy may grow by as much 5% this year.
The input prices index, which measures the price of raw materials, fell to 81.1 from 86.8, the lowest since last July. The real has strengthened more than 10% against the dollar in the last two months.